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Foreign investors move N267.5bn from stock market in five months

Foreign investors move N267.5bn from stock market in five months

In five months to May 2024, foreign portfolio investors (FPI) in Nigeria’s equities took away N267.47billion from the market as against N190.82billion they brought in.

The outflow in five months to May represents a significant increase when compared to the same period of 2023 when FPIs who brought in N49.30 billion into the stock market outflowed N 50.04billion.

Read also: Demand for FGN bond slows as investors seek higher yields

In January 2024, foreign inflow was N15.78 billion while foreign outflow was N37.33billion. In February 2024, foreign inflow was N24.93billion while foreign outflow was N40.88billion. In March 2024, foreign inflow into stock market was N52.66billion while foreign outflow was N41.60billion in March.

A further look at the monthly foreign outflow shows it peaked in April 2024 when foreign portfolio investors outflowed N78.25billion as against N42.58 billion foreign inflow.

Over a 16-year period, domestic transactions decreased by 10.94 percent, from N3.556 trillion in 2007 to N3.167trillion in 2023.

Foreign transactions also decreased by 33.28percent from N616 billion to N411 billion over the same period.

Total domestic transactions accounted for about 89 percent of the total transactions carried out in 2023, while foreign transactions accounted for about 11 percent of the total transactions in the same period.

Read also: FGN bond auction sees low demand as investors seek higher yields

In the review five months, stocks traded on the Exchange were valued at N2.249trillion. Foreign investors accounted for N458.29 billion or 20.37percent, while domestic investors took N1.791trillion or 79.63 percent.

Domestic retail investors traded stocks worth N 885.19billion in the review period while domestic institutional investors accounted for deals worth N906.07billion.